tv The Kudlow Report CNBC November 1, 2013 7:00pm-8:01pm EDT
tweets. "mad money" thanks cramerica for being with us for over 2,000 episodes. twitter, don't go crazy. you offer 20 billion and i'm out of here. always bull markets, i promise i promise to try to find it right for you here on madonna. i'm jim cramer. i'll see you monday! good evening. i'm larry kudlow. this is "the kudlow report." we're live here at 7:00 p.m. eastern and 4:00 p.m. pacific. we begin the developing news out at the los angeles international airport tonight where a shooting earlier today left one tsa agent dead and as many as seven others injured. we're awaiting a news conference from authorities in just a minute. but first, let's check in with cnbc's scott cohn who joins us now live with the latest details. good evening, scott. >> reporter: good evening, larry. friday morning at los angeles international airport. business travelers headed home
at the end of the week. others getting an early start on the weekend when a man in the terminal pulls an assault rifle out of a bag and starts shooting. he blasts his way where passengers normally exit and then makes it a actual way to gates before he is shot by police. one tsa officer is dead, the first killed in the line of duty in the 12-year history. multiple other officers were hurt. airport authorities say in all some seven people were injured, at least one critically. the suspected gunman is paul anthony ciancia, originally from new jersey, living in los angeles, employment unknown, motive unknown, but apparently was carrying paper that said kill tsa. in new jersey where his family still lives he sent a text just this morning mentioning suicide. pensacolaville police called los angeles police asking to check on him. his roommate said he hasn't seen him but then it was too much. traffic in l.a.x. ground nearly to a halt.
only now nearly seven hours after the incident are things starting to come back to normal. jane wells will have more on that in a moment. authorities have scheduled another news conference this hour at l.a.x. we'll bring that to you live and all the details as we get them. larry? >> all right. just operational stuff, scott. basically, the airport's incoming and outgoing flights, that up and going? >> some of them are, but there still is last we heard a ground stop that could be ending fairly soon. in other words, flights that were bound for l.a. were being held at their departure point. so there are obviously plenty of delays. all the terminals at the airport at one point were evacuated. some back, but it's a long process. >> one tsa dead. multiple other tsa people injure. do we have any sense of who is in the hospital for example, what kind of shape they're? how they're classified? >> we don't. we know there was one news conference from ucla medical center where they had three people injured, one of them
critically, a couple of them gunshot wounds. but we don't know the specifics yet. a lot of what is going on is privacy concerns as they notify the family and get permission to release some of the information. even the numbers, the airport authority said earlier today seven people injured, six transported to the hospitals. we'll see if we get an update on that in the news conference later this hour. >> many thanks. let's get right to jane wells. she joins us live from l.a.x. good evening, jane. >> reporter: hey, larry. traffic slowly getting back to normal. dozens of flights canceled. hundreds of departures and arrivals delayed. terminal 3 where the shooting happened remains closed as well as the parking lot. airlines operating out of that terminal moving to other terminals which are slowly reopening. baggage abandoned during the evacuations can be retrieved at the baggage care sells. but this shutdown today is going to have ripple effects across the country for travelers and flights, perhaps throughout the weekend. so if you're flying this weekend and next week early, check
ahead. we've seen a couple of virgin america planes take off. that airline operates out of terminal 3. same with jetblue, which transferred operations to long beach airport. except sent this one flight back out to long beach to deplane. but the streets around this very busy airport, the sixth busiest in the world, these streets are jammed on a good day. they came to absolute stand stills for hours. even emergency crews had trouble getting through. century boulevard, the main road in and out of l.a.x. is being reopened. but cindy topar, an employee was on an employee bus, turned around by security. the lack of crews in the airport will slow down any return to normal. listen. >> even if they say okay, the airport is open, now the flights can take off, it doesn't matter if they can take off if you don't have the pilots and flight attendants because we're all either stuck at home, stuck on the bus, or wherever. that seems like that's just
going to take hours before that can happen. it seems like the airport is going to have to open, and then they'll let us start coming in. we brief. we do all the things that we need to do to get a flight off. and i don't foresee that. >> we're going to have to cut out of this. the press conference is beginning with the mayor of los angeles. we'll take it live right now. >> prayers are today with the families' loved ones and the colleagues of the fallen. an attack like this tests our resolve. ask who we are and how we respond to moments like this, in the line of fire and in our recovery. it is a tremendous testament that today, a day that started with horrific attacks is now ending with los angeles international airport beginning to reopen. this morning a gunman opened fire in l.a.x.'s terminal 3, killing a tsa agent, the first to die in the line of duty, and shooting at least two other
people, at least one of which was a tsa agent. additional individuals have had minor injuries and have been treated. airport officers engaged the suspect, opened fire, wounded him a and took him into custody. the suspect has been identified as paul anthony ciancia, 23, a resident of los angeles. right now l.a.x. terminals with the exception of number 3 are reopening as fast as logistically possible. but travelers should expect delays and check with their airlines for flight information. our first priority is safety. i know there is tremendous pressure for the traveling public to get on their planes, to feel that they are secure. but we want them to be safe first and foremost. so every part of this airport must be cleared before terminals can reopen. freeways and surface streets are now open. but again, the area around l.a.x. should be avoided, unless you have clear information on
your flight and need to be in the area. well also have a hotline for travelers needing a hotel near l.a.x. they should call 1-888-831-7176. one of the lessons of 9/11 was the need to work seamlessly across jurisdictions. ironically, we've had the fbi director here earlier today. one of the things he expressed was how well this region works together before we knew this incident was going to happen. i've personally witnessed as mayor of the city seamlessness between agencies, between different levels of government, and i personally want to thank each of the men and women across the federal, state, and local agencies that today have done incredible work. i want to commend those departments for their coordinated response, and hear again from a number of speakers. but i want to thank the volunteers, the staff at los angeles world airports, the red cross, our civilian teams that fanned out, whether it was to get people into hotels or pass out water, to help feed some of
the stranded and to ensure that traffic was flowing, this was really a team effort. now i would like to -- for the update on the incident itself and some of the criminal aspects of it ask again special agent in charge david bouch to come forward to say a few words. >> thank you, mr. mayor. thank you, chief beck, thank you, chief gannon. first off, i'd like to thank the media for your patience. this is a very large scale investigation. the crime scene is extensive. we are currently applying a tremendous number of resources in conjunction with our partners from lapd and los angeles airport world airport police. today we are going to confirm the identity of the subject. it is paul anthony ciancia. that's c-i-a-n-c-i-a. he is 23 years old. he is a u.s. citizen. he is formally a resident of new jersey.
we are currently investigating his background and more about him. i'm not going to provide too many updates on that at this point. the decedent's identity is not going to be confirmed out of respect for families. the families are going through a very difficult time today, but we are going to confirm that it was a tsa employee who is actually the decedent in this case. there is also one additional tsa employee who was wounded by gunshot. there are additional injuries, some of which seem to be potential evasion injuries where they may have injured themselves trying to get away. at this point, we have one terminal shut down, and we will have that shut down for a while while we continue the investigation. the forensic teams are in there from both the fbi as well as lapd. their work is long and methodical, and they will take their time on this to be -- to
be complete in their investigation. we do have a tip line i would like to pass out. a tip line is an fbi tip line. the number is 1-888-226-8443. if you have -- i would seek the public's assistance if they have information which would be beneficial to this investigation. and we ask that they please keep it to that. we would like to know about it. we do have that line staffed right now. it is available, and we are ready to run those leads. additional information, i know you want all the facts. we can't provide those to you at this point. i see some of you smiling. we're not going give any more at this point on the investigation. >> we'll take questions just at the end. again, i would like to ask executive director jeanmar relindsey from los angeles world airports to come forward. she has information about the
operations right now of this airport, what is moving forward as we speak, and some of the great work that her staff did today. gina marie? >> thank you, mr. mayor. between 9:30 this morning and approximately 3:00 p.m. this afternoon, there were about 746 flights that were affected. 46 of those were diverted to other local airports. the rest were either held on the ground here at l.a.x. or at their originating airport. we are glad to report that terminals 1 and 2 are now in the process of being repopulated. employees first. tsa employees, airline, and concession area employees in place, and then passengers will be allowed back into those terminals. terminal 3 and parking structures 3 will remain closed for the time being. any folks who have flights
tomorrow with the airlines that typically operate out of terminal 3 should contact the airline for specific information. we expect to be operating those flights, but probably through a bugs procedure at the remote gates. we will also on the l.a.x. twitter feed be providing as much information as we understand what the operational details will be for those flights. the faa national ground stop on arrivals for l.a.x. is scheduled to be lifted at 4:00 p.m. today. lastly, i just want to tell the public and the travelers and all of those who are intending to meet or bid those travelers adieu, thank you for your patience. this has been a trying day for everyone, i know. for those who are awaiting arriving passengers, we're going to be bussing those passengers to lot c at 98th and sepulveda. so within the next two hours,
the arriving passengers should be there for pickup. i want to reiterate the hotel hotline that is being provided by l.a. tours and convention board that is 1-888-831-7176. passengers stranded at l.a.x. certainly are encouraged to call that hotline for accommodations. thank you. >> thank you. gina marie lindseylindsey. when i say we had great coordination here today, it started long before the tragedy that befell us today. just three weeks ago there was training that went on with both the airport police and los angeles police department on the incident just like this as was shared earlier. the tactics that were used today were actually practiced then, tactics that were developed by los angeles police department that were trained on by los angeles world.
as well pat gannon. >> thank you. just a couple of things from my engd. that this incident had occurred. airport police officers were on scene immediately. and began to move after that particular individual the suspect as he proceeded through terminal 3. they eventually caught him and caught up with him near the rear of the terminal, and that is where an officer-involved shooting occurred. there has been some information that we had made some changes and security here at the
airport. as it relates to officers assigned to our terminals. and that is correct. we constantly evaluate our deployment of people, our strategies, our tactics in dealing with individuals and with potential incidents like this. and, in fact, many of you had probably traveled through an airport over the years and saw a police officer at a podium just behind the screening area. about a year ago when i got here, i thought that many of our officers needed to be out in front of our screening area rather than behind the screening area. so whatever information is out there regarding not having deployed enough officers, that's not the case, or that if our officers hadn't been employed correctly, that is not the case also. our officers were deployed where they're supposed to be, and performed heroically. in this particular matter. it is a big job to get this
place repopulated, and to get people back on to their airplanes. the information that gina marie lindsey provided to each of you is important. but i want to thank individuals of los angeles police department obviously who are everyday partners here and have done an amazing job and brought in tremendous resource. but we also had resources from l.a. county sheriff's department, the california highway patrol, hawthorne pd, inglewood pd, all of our surrounding law enforcement partners in this particular effort. and in california, and especially in los angeles, there is not an incident that can be run singularly by any one person or agency. it is a combined effort. i have to say nothing is ever perfect, but here our relationships work well together, and i think everybody performed well. there will be things that we can
improve, but nonetheless i think this overall worked very, very well. i'll turn it back to the mayor. >> we'll take questions in just one moment. next we're going to hear from chief beck who is the chief of the los angeles police department who had staff resources that were already predeployed here and many more joined us today. >> we may rejoin this press conference if there is any brand-new information. we're going keep a close eye on it as you can imagine. but let's go to former fbi assistant director chris zwecker, and with us is former tsa administrator and former deputy homeland secretary jim loy. gentlemen, thank you very much. mr. loy, may i begin with you? the airport police chief was talking about where the airport police were stationed. in front of this screening area or behind the screening area. from what i think i gather, he was suggesting that they are put behind the screening area. is that correct?
and in your judgment, is that the right place for them to be? >> what i heard him say, larry, is when we took the job over, the standard procedure was to have those officers behind the screening area, and that he has since made an adjustment that would put them in the front side of the screening area, which i certainly believed to be the right way. >> so you think today they were at the front side of the screening area? >> that's what i understand, yes. >> so this guy, ciancia, whatever, however you pronounce his name, paul anthony ciancia, he got through there anyway. he shot his way through there. is that basically what happened? >> well, you know facts as well as i do. i think the investigation will give us a timeline and specifically what happened. but at least as i understand it, as he approached the checkpoint or the screening area, he was able to shoot his way through to what degree there was an officer specifically at the front of
that checkpoint at that point. i simply don't know the answer to that question. >> all right. appreciate that mr. chris zwecker, welcome to the show. >> thank you. >> let me just ask you, how do you prevent this kind of thing? is this preventible? we know these things may happen from time to time. we'll probably find out more about this guy ciancia and he is probably as crazy as a $3 bill. he is probably a nut cake. but whatever. my question to you as former assistant director to the fbi, how in the world do you stop this kind of thing? >> it's very difficult there is an axiom if in the security industry if it's predictable, it's preventible. we certainly know l.a.x. has been targeted in the past. but this is extremely difficult to prevent. today it's the airport. tomorrow it might be a sporting event or possibly a shopping mall there are some vulnerabilities at the airports. the exit has always been a vulnerable area. and as i understand it, that's how he shot his way through, to the left of the screening area. there is always an exit, and
that's guarded by one officer, usually unarmed. and if you know -- if you know the airport layout, that's the vulnerable spot. >> i do. and let me just ask you, this guy had to make his way through the terminal. and even before he gets to the screening area, he's got to make his way through the entrance to the terminal. i don't know if he was holding this automatic gun or not. he probably was. is there any way to get a tip off? airport cops were around. i presume they saw him moving about as he was heading towards the screening area. is there any possible way, red flags, warning signs, stuff like that? >> well, the information i have is that this was in some sort of carrier or bag and he pulled it out of the bag. an assault weapon like what i saw in the images is not as long as most people think. it's concealable. so my guess is nay didn't have enough time to react even if
they were able to see him. >> were you surprised -- let me ask you this. discussion that was held by the airport police chief i believe, just now at the press conference, that three weeks ago, they had training. i believe the way this went is the airport police went through training with the los angeles police department. i think i got that right, three weeks ago, to try to prevent this sort of thing. what is your take on that? that surprised me. i would have thought that kind of drill would have happened a long time ago. >> it would surprise me if that was the first time they drilled this. i mean, this, again, as we mentioned earlier, l.a.x. has been a target in the past. i would be very surprised if that was the only time they ever drilled this. but you hit on a real good point, larry, and that is prevention. security is about good visible deterrent. and i think having an armed presence, not every tsa officer armed, but an armed presence at the airport at the vulnerable areas is a good security
measure, a preventative security measure. >> mr. loy, should the tsa be armed? >> i've never thought that was the case. from the very beginning when we stood up the agency and i think all the way to today, the notion of a kind of a cascading a multiple layer security system is the design purpose of what tsa provides to the airport together with. and i emphasize the word together with, the collaboration necessary with all the other law enforcement elements in the airport. and so the notion of collaboration being the key word here, what i heard from both police chief representing the airport police and the lapd police chief indicated that there was very strong collaboration. and i agreed completely that the training held three weeks ago just happened to be the last time they did it. my guess is they were doing that quite routinely. because at the other end of the
day, the prevention game plan is to first of all have a plan, think through the scenarios you're going to have to deal with, have a plan, train your people to that plan, exercise those people occasionally, like was the case three weeks ago, and then you're going to be able to execute against that kind of a planned reaction in the event the scenario actually occurs. and i think it sounds to me like they did that very, very well today. >> mr. loy, one last question. this may be a bit unfair. but do you think in your opinion there are enough armed police? i'm going to call them armed police as opposed to the tsa, whether they're lapd or airport or whatever, do we have enough there? >> i just -- that's an unanswerable question, as you suggested. i think there is 460 airports around the country, each of which has to abide law and by policy have a security plan put together. that security plan includes the notion of armed presence both as
a deterrent, which was mentioned just a moment ago and i couldn't agree more with that, and also to have the firepower available should an incident like this occur. >> thank you, gem. james loy, chris swecker. we're going to keep you updated on this investigation throughout the show. but now it's time to get back to some of the other big stories of day, the continuing unraveling and collapse of obama care. still a big story. today a leading senate democrat comparing the health care law to humpty-dumpty. just another sign the political and media tide has turned against the health care plan. and as always, don't forget, free market capitalism is still the best path to prosperity. for the millionth time, i will say this obama care has nothing do with free markets, and "the kudlow report" will be coming right back.
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and exciting. and maybe, most remarkably, not that far away. we're going to wake the world up. and watch, with eyes wide, as it gets to work. cisco. tomorrow starts here. welcome back to "the kudlow report." so, this week marked a turning point for obama care and the obama administration. it all started with a blockbuster nbc news report proving that the obama team knew that millions of americans would lose their health plans. take a look. >> four sources deeply involved in the crafting of the affordable care act tell nbc news that most of the 14 million americans who buy their own health insurance will have their policies canceled. the white house has known this would happen for at least three years. >> if you're one of the more than 250 million americans who
already have health insurance, you will keep your health insurance. >> people have got to know whether or not their president's a crook. well, i'm not a crook. >> you keep your own insurance. you keep your own doctor. >> tonight more of our reporting on the millions of americans finding out their plans will have to change. >> breaking overnight. they were warned. nbc news has obtained a new report showing the obama administration knew about problems with the health care website weeks before its launch. >> kathleen sebelius testifying in front of the energy and commerce committee. >> i'm accountable to you for fixing these problems, and i'm committed to earning your confidence back. >> in just a few minutes, the president is making a campaign trail-like speech for obama care. >> before affordable care act, these bad apple insurers had free reign every single year to limit the care you receive order use minor preexisting conditions to jack up your premium. >> all i'm after right now is keeping my plan, paying the rates that i have. >> all right, now, let's look at
the latest obama care news just breaking today. first, democratic senator max baucus took another swipe at the health care law, comparing it to humpty-dumpty. more importantly, he says he would now consider supporting a delay of the tax penalties in the law's individual mandate. second, obama care suffered a loss in court today. the d.c. federal peers court struck down the birth control mandate in the law. the case is now expected to go to the supreme court. and this is the number, the number that still resonates across america. tonight six, six only six people successfully enrolled in an obama care health exchange plan on day one of the roll-out. six. let's talk about all this. we welcome for the first time dorian warren, columbia university associate professor and roosevelt institute fellow. robert traynham, former bush/cheney senior adviser and georgetown university assistant
dean. and jimmy kemp, president and founder of the jack kemp foundation. welcome, everybody. bob traynham, one of the things that occurs to me today with all that went on, the cancellations and the lack of grandfathering, and it was one drama after another, sebelius gave a terrible performance and so forth, and people realize they're not going to be able to keep it and the president broke his promise, they can't keep their -- >> individual. >> did in your opinion has the tide turned? is the public, popular and even media tide turned against obama and the obama plan? >> absolutely. the reason why is to your earlier montage that you aired a few moments ago is a lack of credibility there is a lack of transparency. there is also not a plan. so when you see the president and the administration say you're going to be able to keep your plan. everything is going to be fine. and obviously that's not the case, then there is a credibility issue here. for a long, long time it was the republican party that was saying the sky was going to fall. nothing was going to work. and everyone said that's partisan rhetoric there. that's what they have to say. but in reality, what we're
seeing here is not only that six people were able to enroll, but 40,000 people tried to enroll and they simply could not enroll. so there is a lot of creditability and trust, not only with the administration but with the government overall. >> numbers are just going to get worse on this. potentially there is 50 million people that are going to have to go over. >> right. >> and by the way, potentially there is another 90, 93 million people that have employer-based grandfathered which is not going to qualify either. but dorian warren, let me go to you on this on the credibility question. and specifically, the president blamed insurance companies for putting out these shoddy bad apple substandard he called them. doesn't he know, i don't know, maybe you don't know. state regulations of insurance is the most regulated area virtually of the entire economy. in other words, you don't just get on the back of the truck and start selling insurance policies. they have to go through very rigid local, state regulations.
so the president blaming insurance companies here, i think that really hurt him when he went there. >> i do think both of you are right in terms of the credibility problem. i don't think we see that yet in the data. the new kaiser poll released today, more americans want to keep or expand. or go back to the status quo we had before obama care. so the numbers actually don't add up yet. but this is a long time, right? unless they fix this in a short amount of time and people can experience it in a way that is positive, those numbers will go down. but here is another number. 97% of americans are unaffected by this disastrous roll-out. that's according to jonathan gruber, an m.i.t. economist. >> and barack obama. >> i understand. we've had gruber on here. these stories are awful. they don't really add up. >> that assumes you're not including the employer-based
insurance. >> well, that's 80%. >> the employer-based insurance is going to come into play because that won't be grandfathered either because that won't pass the regulations. and jimmy kemp, i want to ask you, if you've got roughly 15 million people individual insurance and you've got as much as 90 or 93 million people employer bases, what is left? the whole workforce, 156 million people. who is going to support this? >> well, larry, a lot of people are going to support it because there is a problem with health insurance. there are problems. and republicans should not be acting as if there aren't problems. and it is the job of politicians and policymakers to provide solutions. and i would say that the republicans needed to do a more aggressive job of promoting the free market solutions that we know really work. >> but they have put out. >> give the individual the tax break, for example. >> hsas are great. >> right. >> health savings accounts,
absolutely. >> we've got to be talking about those. and the message comes across too negatively too often. >> that's a gop affliction. i agree with that. >> it is a gop affliction. so we've got to highlight the market-based solutions and president obama has revealed that he is coming from a static perspective of the world, which doesn't account for all these contingencies. and yes -- >> i agree with you a thousand percent. but they knew the health care website was not going to work. they had weeks if not months to say let's stop enrollment. i remember doing the bush administration when medicare part d was rolled out. they delayed it. the reason was because it's bumpy. rolling this stuff out is difficult. it's hard. it's complex. but for the administration to continue to stonewall and be oh, what are you talking about? the sky is not falling and look at you, you're an idiot. but looking at them, i'm not saying they're idiots. >> bureaucratic stonewalling. >> very much. so.
>> that's how i describe sebelius. i've been up there. and sometimes they do have to dance. i get that. i've testified. i want to come back to your point on the president and the credibility. i really believe that the single biggest mistake he made was going back on his promise to grandfather the existing plans. in other words, his own staff, and this is the part, his own staff is conjuring up regulations over the past three years which is basically putting the president in an untenable position, because the regs were so strong that they had to give up the grandfathering. do you agree with me on that? was he sabotaged by his own staff? do you think he knew when he went out there promising this? because i think the way it sounds, that the public says uh-oh, he broke his promise. i'm not going to say he lied. i don't like that lie. but he broke his promise. it's just as bad. >> this goes to jimmy's point about politics not being static but dynamic. implementation, there are a lot of variables that go into it. he probably didn't know what his staff in terms of the
regulations they were drawing up were doing. and that's a problem. that's a problem. >> and that affects any president, right? i'm not saying it's something specially unique to him. presidents live in bubbles even from their staff. >> hold on. this is a quarter stone issue for this president. this is a legacy issue that he ran on not once, but twice. >> absolutely. >> and let's just say hypothetically that the staff failed him, that heads need to roll. let me ask another question. should not the president have been asking the tough questions? is there not enough gravitas you know what, mr. president, this is not going to work come october. >> neither of us were there. we don't know what the discussion was. >> sure. >> but this is a credibility problem. >> it's his problem. >> and it also opens up. >> we're going to come back to you. >> new legislation to amend it. >> i understand. we're going to talk about the various legislative proposals. we're going to talk about the politics of this whole thing. and we're going to talk about the republican response. so stay right where you are. we are still following the latest developments at the l.a.x. shooting.
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video. scott cohn joins us once again. what you got, scott? >> and lots of new information as well, larry. let's bring you again up to date. for the first time in the 12-year history of the transportation security administration, one of its officers has been killed in the line of duty. it happened on a busy friday morning at los angeles international airport, the sixth busiest in the world when a man entered the terminal, pulled an assault rifle out of a bag, and began shooting. in addition to the slain tsa officer whose name has not been released, two other people were shot. one of them a tsa officer. the suspected shooter, paul anthony ciancia, 23 years old, a los angeles resident originally from new jersey made it all way from the security area to the gates before police shot him, as you can see, in this, the new video that larry was talking about, shot by tmz. in the chaos, several other people suffered minor injuries. the airport shut down for hours. and if all of that isn't chilling enough, los angeles mayor eric garcetti told reporters just moments ago this could have been a whole lot worse.
>> is there was additional rounds that this gunman had. and the fact that these officers were able to neutralize the threat as they did, there were more than 100 more rounds that could have literally killed everybody in that terminal today. were it not for their actions, there could have been a lot more damage. >> clearly heroism by the authorities in the airport. so who is paul ciancia? well, the authorities aren't saying much. but he apparently texted his brother in new jersey just this morning, mentioning suicide. the family called police, but by then it was too late. nbc news reports police found anti-government literature on him, including the words "kill tsa." as you just heard from the mayor, they also found lots of ammo that is. it could have been much worse. but still one tsa officer dead. >> scott, let me just ask you something, going back to that news conference. one of the officers, one of the police chiefs, or maybe it was the mayor said that the episode, if i can call it that, began at
9:22 a.m., or they were aware of it at 9:22 a.m. does anybody know roughly what time it was he was shot? >> not for certain, no. what happened as you heard around 9:22, 12:22 on the east coast, he went through security -- he didn't go through security, he went through the exit area where people come out. shot the tsa officer and made his way all the way down the terminal, all the way to the gates. and that's where they were finally able to in their words neutralize him. so it couldn't have been very long that it took them to get to the other side of the terminal. >> i was just trying to figure it out. the mayor is right. he could have shot off a lot more rounds and it could have been absolutely that is scott cohn. we're going to be right ooh back here on "the kudlow report." (vo) you are a business pro.
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whether you're just starting your 401(k) or you are ready for retirement, we'll help you get there. welcome back to "the kudlow report." i'm sheila with this market flash. 70 points. that regains about half the two-day loss sparked by the fed statement wednesday afternoon. the s&p 500 also closed higher for the day and the week.
its fourth straight weekly gain. heading in the next week, lots of things for investors to watch, including earnings report. as the season is drawing to a close. and next friday we'll get the jobs report that was delayed from today because of the government shutdown. so larry, plenty of things to keep an eye on. >> many thanks, she'll lap. appreciate it. and welcome to the show. all right, folks the economy is rising, and i still believe janet yellin is the empress of the doves. what is more, i think the federal reserve would love a 3 to 4% inflation rate that is if they could do it. so far they haven't. let's ask the experts what they think. we bring in alan valdez, vice president of trading at dme security, warren meyers, managing director at illustro trading. give me your quick take now. where are you? >> we're pretty much status quo as far as the fed is concerned. i think the economic data we've seen in the u.s. has been moderate at best, and not enough for the fed to hang a tapering hat on yet. so i think that tapering is
going to be pushed back probably until march, april of 2014. and because the floor is now in the marketplace and has been here for quite some time, any downward movement is going to be tampered and tempered. and i think we've still got potential on the upside. >> warren, you're probably going to be wrong because i agree with everything you just said, okay. we're going to hang together on this. i want to bring in my pal al. look, i think that all this market chatter that the fed is going to taper soon and that that's what they said in the fomc meeting is a complete misreading of the fed. the ism report is all well and good, but they want to see months after months of big jobs numbers and gdp numbers. that's why the fed is not going to do anything. >> i do agree.
>> the talk of tapering this past fall. >> and remember, the feds are now $4 trillion into this basically, and interest rates go up, who is going to bail the fed out? >> i will say something else here on this fed policy thing. europe. i don't know if you saw some of the stories coming out of europe today. the european inflation rate is practically zero. they have not had -- i believe it was 0.7%. our cpi was 1.2%. i'm going year on year. europe has a serious risk of deflation. and the federal reserve knows that because the fed's money pumping. a lot of it leaks into europe, as you guys know, and the european and american stock markets are very linked. there is another reason why we're going have loose, loose, loose money. >> you know also, what has got lost in the last few weeks with obama care and the debt court of appealing is unemployment rates in europe are skyrocketing. i mean 12.2 for the general
public. but youth unemployment is over 56% in spain. in greece over 58%. it's troubling. >> the european central bank is making a huge mistake. they have to pour far, far more money into the economy. warren, let me go back to you. on the other hand, profits are the mother's milk of stocks. and i know we always obsess about the fed. are you satisfied with the profits report so far? >> i think they have been consistent. and what we've been seeing over the last few quarters have been pretty steady. revenues a little over 50% on the beat side. granted, off of lowered expectations. i'll grant you that. i think these are, again, moderate numbers. nothing to call home and really rave about. but not enough to really put a scare into the marketplace. >> see, that's the thing. if profits are rising. people say profits are slowing down and revenues. i understand that. but you're at record profit levels, shared gdp and what not. to me, if profits are rising in
this monetary environment, you really can't fight the take. you may have stock corrections, but you really can't fight the take. >> and there is nowhere else to go. where are we going to get 23% on your buck except the s&p. you're going to come here. yeah, they are rising very slowly, but they are rising. >> that's very important. i think it's true for the whole economy. >> no, it absolutely. when you think about it again with the fed floor and this marketplace, it's a relatively -- at least there is a sense that it is a relatively safe place to put your money. >> one thing that does trouble me -- we got to get out of here -- obama care and this glory troubles me. a whole lot of people in the next 12 months are going to pay higher premiums which is a gigantic tax hike for the economy. but we'll have a bigger discussion on that. allen valdez, warren meyers, thank you very much. i appreciate it. the continuing obama care disaster and the budget battles have americans angry at both parties. maybe like never before. so that could be bad news for incumbents in the 2414 election.
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would have catastrophic implications for 2014. now we have the obama care catastrophe. does that change the game here? >> there is always going to be something that changes the game. we live in a very short attention span world now. and so there will always be plenty of changes. but bottom line is that this is the president's signature initiative, and he's got democratic support. and the great thing about living in a democracy is that citizens can vote people out. >> and this could be an anti-incumbent -- i think people are furious at both political parties. that's what the data points to. this could be one of these throw the bums out. i want to get to the democrats running scared in just a second. but throw the bums out, bob traynham? >> possibly. in the house, republicans most likely will maintain the house. in the senate, though, throw the bums out very well could be those quote/unquote liberal democrats or the moderate democrats in red states. i think that's where you may see some democrats lose their seats.
>> you've got to see this, the democrats running scared. today max baucus, powerful guy. he has come out and called the whole thing humpty-dumpty. he is going to join jeanne shaheen from new hampshire. she has a letter circulating that basically they will postpone the tax penalties. you also have senator ron johnson. he wants -- if you want the keep your own plan, you can. he is saying i will grandfather everything. he's got 40 cosponsors, senator mary landrieu may or may not sign on to him. now, do you think that president obama and harry reid will allow any of these democratic bills to even be voted on? do you think so? >> i don't think it's up to the president. i think it's solely up to harry reid in this case. >> oh, come on. oh, come on. >> yes. yes, harry will have a vote on this. and the reason why is there is two members of the united states senate that you just mentioned that are up for reelection that are in states. >> and max baucus. >> harry reid has to give his caucus distance from the president. >> that's right.
>> the president is too damaging. and so yes, harry reid would bring to it a vote even if the president doesn't want it to come to vote. >> remember, the president is not running for reelection. these guys and gals in the senate are. their names are on the ballot. harry reid will definitely give them. it doesn't mean it will pass. >> larry, it's a long time to november 2014. >> i'll grant you that. this thing completely change. the republicans went from deep, deep yogurt. now i don't know that they're ahead. i'm not sure. >> the republican party has record lows. >> what is happening is both parties are digging the ditch deeper for themselves. jimmy kemp, what should the gop, real quick, what should their message be? >> the message has to be about growth, and that individuals pursue their separate interests. that's what our country is based on. free market principles. and the republican party is the party that best represents those, but it has to have the pro-growth positive message. >> does it have it? >> we need more happy people. i think there are a lot of great leaders out there. paul ryan, who you interviewed
tuesday night at our dinner is one of the great one ones. and we need more of them. >> i got to jam. thank you very much. appreciate. quick note, one of the "kudlow report"ers producers bri kelly along with her fiance ryan will be running in sunday's new york city marathon. bri, from all of us here on the show we wish you the very best at every mile. that's it for this evening's show. thank you for watching. i will see you all on monday. [ male announcer ] they are a glowing example of what it means to be the best. and at this special time of year, they shine even brighter. come to the winter event and get the mercedes-benz you've always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho! [ male announcer ] lease the 2014 e350 for $579 a month at your local mercedes-benz dealer. [ male announcer ] lease the 2014 e350 for $579 a month have hail damage to both their cars. ted ted is trying to get a hold of his insurance agent.
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>> narrator: in this episode of "american greed" the fugitives... international mutual fund manager eric bartoli lands in the small town of doylestown, ohio, selling a dream. >> the message was very clear. "i'm successful, i'm happy, i know how to make money." >> narrator: but his promise of a mutual fund with never-ending positive returns is just his latest lie. >> i would doubt that eric bartoli made an honest dollar in his adult life. he's probably gone from scam to scam to scam. >> narrator: bartoli allegedly steals more than $65 million from investors throughout the western hemisphere. >> you're looking them in the eye and saying, "your life savings have been stolen." >> narrator: and when it all comes crashing down, this